Subjects finance

Daily Compound Interest Fcc3C4

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1. **State the problem:** Calculate the amount of money after 10 days with daily compounding interest at an annual rate of 15% on a principal of 801324000. 2. **Formula used:** The formula for compound interest compounded daily is: $$A = P \left(1 + \frac{r}{n}\right)^{nt}$$ where: - $A$ is the amount after time $t$, - $P$ is the principal, - $r$ is the annual interest rate (decimal), - $n$ is the number of compounding periods per year, - $t$ is the time in years. 3. **Identify values:** - $P = 801324000$ - $r = 0.15$ (15%) - $n = 365$ (daily compounding) - $t = \frac{10}{365}$ (10 days in years) 4. **Calculate:** $$A = 801324000 \left(1 + \frac{0.15}{365}\right)^{365 \times \frac{10}{365}} = 801324000 \left(1 + \frac{0.15}{365}\right)^{10}$$ 5. **Simplify inside the parentheses:** $$1 + \frac{0.15}{365} = 1 + 0.0004109589 = 1.0004109589$$ 6. **Calculate the power:** $$1.0004109589^{10} \approx 1.004110$$ 7. **Calculate final amount:** $$A \approx 801324000 \times 1.004110 = 804600000$$ **Final answer:** The amount after 10 days is approximately **804600000**.